Kabbage Small Business Loans: A Comprehensive Review
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Are you a small business owner looking for some financial support to strengthen your business? You might have heard of Kabbage, a fintech company based in Atlanta, Georgia, United States, that provides small business loans. In this article, we will provide a comprehensive review of Kabbage, its loan products, eligibility criteria, application process, rates and fees, customer reviews, and all you need to know if you are considering Kabbage as your financial partner.
Kabbage was founded in 2009 by Rob Frohwein, Marc Gorlin, and Kathryn Petralia, with the mission to help small businesses access flexible funding. Kabbage has a unique lending model, where it uses advanced algorithms to evaluate the creditworthiness of a borrower in real-time, based on their business performance data. Kabbage has funded over $10 billion in loans to more than 200,000 small business owners, in various industries such as retail, construction, healthcare, and many more.
Kabbage Loan Products
Kabbage offers two loan products to small business owners, which are:
1. Business Loans
Kabbage Business Loans are term loans, where a borrower receives a lump sum of money with a fixed repayment period, typically ranging from 6 to 18 months. The loan amount ranges from $2,000 to $250,000, depending on the borrower’s eligibility and creditworthiness. The interest rate on Kabbage Business Loans starts from 1.5% per month.
2. Line of Credit
Kabbage Line of Credit is a revolving credit line, where a borrower can withdraw funds as needed, up to their credit limit. The credit limit ranges from $2,000 to $250,000, depending on the borrower’s eligibility and creditworthiness. The repayment period for Kabbage Line of Credit is typically 6 or 12 months, and the interest rate starts from 1.5% per month.
Kabbage Eligibility Criteria
To be eligible for Kabbage loans, a borrower must meet the following criteria:
– A minimum credit score of 560
– At least 1 year in business
– Annual revenue of $50,000 or more
– A business bank account
– Personal guarantee from the business owner
Kabbage Application Process
Kabbage has a simple and fast application process, which is entirely online. A borrower needs to follow these steps to apply for a Kabbage loan:
– Fill out the online application form
– Connect your business banking and accounting data
– Receive a decision within minutes
– If approved, choose the loan product and the amount
– Receive funds within 1-3 business days
Kabbage Rates and Fees
Kabbage charges a monthly fee for its loans, which ranges from 1.5% to 10%, depending on the loan product and the borrower’s creditworthiness. Kabbage does not charge any origination, prepayment, or late fees for its loans. However, if a borrower misses a payment, Kabbage may charge a dishonored fee, and it may report the late payment to the credit bureaus, which may affect the borrower’s credit score.
Kabbage has received both positive and negative reviews from its customers. On Trustpilot, Kabbage has a rating of 4.7/5, based on more than 9,000 reviews. Customers praise Kabbage’s fast and easy application process, excellent customer service, and reasonable rates. However, some customers complain about Kabbage’s high-interest rates, limited loan amounts, and strict eligibility criteria.
Kabbage vs. Competitors
Kabbage is not the only fintech company that offers small business loans. Some of Kabbage’s competitors in the US market are:
OnDeck is a New York-based fintech company that provides term loans and lines of credit to small businesses. OnDeck has funded over $10 billion in loans to more than 100,000 businesses since its inception in 2007. OnDeck’s interest rates range from 9.99% to 99%, depending on the borrower’s creditworthiness, and its loan amounts range from $5,000 to $500,000.
BlueVine is a California-based fintech company that offers invoice factoring, lines of credit, and term loans to small businesses. BlueVine has funded over $3 billion in loans to more than 20,000 businesses since its inception in 2013. BlueVine’s interest rates range from 4.8% to 51%, depending on the loan product and the borrower’s creditworthiness, and its loan amounts range from $5,000 to $5 million.
Fundbox is a California-based fintech company that provides lines of credit to small businesses. Fundbox has funded over $2 billion in loans to more than 150,000 businesses since its inception in 2012. Fundbox’s interest rates range from 4.66% to 8.99%, depending on the borrower’s creditworthiness, and its credit limits range from $1,000 to $150,000.
In conclusion, Kabbage is a reliable and convenient option for small business owners who need quick and flexible funding. Kabbage’s loan products, eligibility criteria, application process, rates, and fees are transparent and customer-friendly. However, we recommend that borrowers compare Kabbage with other lenders, such as OnDeck, BlueVine, and Fundbox, to find the best deal that suits their business needs and budget. Thank you for reading, and see you in another interesting article!